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Rompetrol Might Lack Funds To Repay Whole Debt To Romania

Romanian government estimates the country's second largest oil group Rompetrol might not have sufficient funds to repay its entire debt to the state by the September deadline, due to liquidity shortage.
Rompetrol Might Lack Funds To Repay Whole Debt To Romania
05 mart. 2010, 19:51, English

Netherlands-based The Rompetrol Group N.V must reimburse Romania 2.4 billion lei (EUR1=RON4.0923) by September.

However, the government estimated the oil company will only be able to pay half the amount this year, according to a variant of the convergence program for 2009-2012, drafted in February.

„The basic scenario for 2010 includes a complete capitalization of Rompetrol’s bonds, amounting to RON2.4 billion. However, due to the company’s announced liquidity shortage, the sum might drop to RON1.2 billion (0.2% of the gross domestic product),” the document, obtained by MEDIAFAX, noted.

Back in 2003, the Romanian executive adopted an ordinance stipulating that Rompetrol’s outstanding debt of over $600 million be converted to seven-year bonds.

Rompetrol is fully owned by Kazakhstan-based integrated oil and gas company KazMunayGas National Company.

In July last year, KazMunayGas announced negotiations with several international lenders to ensure financing for its outstanding debt to Romania.